Thinking of Starting a Business? 2025 May Be Your Year As we head into the final months of the year, I believe 2025 will be just as big as 2020 for startups — maybe even bigger. Here's why.
By Aytekin Tank Edited by Kara McIntyre
Opinions expressed by Entrepreneur contributors are their own.
Pandemic businesses are now more than four years old and many are thriving. In fact, recently published research has found "overwhelming evidence that the pandemic and its aftermath featured a surge in genuine entrepreneurial employer business creation," with new firm generation hitting levels not seen since before the Great Recession.
The Covid-era was a fertile ground for entrepreneurship for a few reasons. According to the New York Times, the success of these businesses has been due partially to lasting economic shifts catalyzed by the pandemic. But the events of 2020 also provided the push that some would-be entrepreneurs needed, prompting them to finally launch businesses they'd been mulling over. As one Boston-based entrepreneur told the paper: "A lot of the entrepreneurial journey is taking that first step."
I couldn't agree more. Even though the entrepreneurship boom has cooled slightly since its recent peak, it's still soaring. And as we head into the final months of the year, I predict 2025 will be just as big as 2020 for startups — maybe even bigger. Here's why.
Related: How to Master Your Strategic Planning As You Prepare Your Business for 2025
Bootstrapping has become king
I've been touting the benefits of bootstrapping for years, and I'm not alone. If you're a regular on sites like Indie Hackers or startup subreddits, you've surely noticed the uptick in founders spreading the bootstrapped gospel.
Why? For one thing, AI has made the bootstrapped journey a lot smoother. When I was starting my company, Jotform, nearly 20 years ago, bootstrapping looked much different than it does today. For years, I wore every hat, from marketing to coding to customer service. I've always been a fan of automation, but the tools that exist now, like virtual assistants, simply weren't available.
Now, a lot of a founder's workload can be delegated to AI, which in turn dramatically cuts down on costs. This is true for all startups, but even more so for software developers — as David Kearney, CEO and co-founder of Numra notes in his article for Maddyness, developers can leverage AI assistance for deploying new features and unlocking new efficiencies.
Secondly, I think the love affair with VC funding is losing momentum. Founders are increasingly interested in retaining control over their products and seeing bootstrapping as the hands-on training ground that it is. There's a quote from the classic film Jurassic Park that I find apt for VC funding vs bootstrapping:
"I'll tell you the problem with the scientific power that you're using here: it didn't require any discipline to attain it … You didn't earn the knowledge for yourselves so you don't take any responsibility for it."
I'm not saying attracting VC funding is easy, but it is like starting on the third level of a video game without working your way up. Founders are seeing that, and the trend will only grow in 2025.
Niche markets are more accessible
If you've gone to a restaurant recently, you've probably seen how varied our options have become: There was a time when ordering a burger meant only deciding how it was cooked. Now, you can choose — do you want it vegetarian or vegan? Gluten-free? Organic? Keto? We live in an era with an unprecedented ability to have our exact preferences met. Gen Z and millennials in particular are less interested in generic products and place a premium on brands whose offerings align with their values.
For entrepreneurs searching for a niche, I like the advice offered by Entrepreneur contributor Steve Tan, who suggests beginning by choosing a broad market — say, fitness or gadgets — and then doing tons of research to find the specific gaps that can be filled. "Businesses with a defined niche can stand out from the crowd through specialized, solution-oriented offers," he explains. "Having a niche also makes it easier to create highly personalized and engaging marketing campaigns that can inspire brand loyalty and boost ROI."
The value of niche markets has been evident for a few years, but what's different now is that AI is changing how founders connect with their target consumers. The coming year will see AI's ever-expanding ability to tap into niche markets using predictive analytics, automated market research, targeted content and more.
Related: What Every Entrepreneur Should Prepare for in 2025 — These Trends Could Make or Break Your Business
Barriers to entry are at an all-time low
The truth is, there's never been a better time to be an entrepreneur. The Covid-era, and the entrepreneurship boom that it ignited, have changed so much about the way we live and work: Fledgling companies no longer have to sign pricey leases, staff up quickly or pay huge sums for marketing and advertising. The pandemic forced much of the world to move online, and to a large extent, we've stayed there.
At the same time, AI is no longer brand new. GenAI tools like ChatGPT have shifted from pure novelty to an essential component of our daily workflows. Even non-tech-minded founders can harness AI's power to help with brainstorming, get feedback on ideas and improve productivity in countless ways. This confluence of factors has made entrepreneurship more accessible than ever.
I don't have a crystal ball, and every new year has its surprises. Geopolitics, the economy and the new administration cast everything into question. But if you've been waiting to leap into entrepreneurship for a while, there are plenty of signs pointing to 2025 being the time.
